List of Financial Fraud Allegations on Adani Group!

Controversy and Adani Group go hand in hand. Ever since it has made its name in the business world, there hasn’t been a year without any allegations. This time around the group is in picture for allegedly siphoning tax payers Rs. 1 bn into its offshore accounts.

While, the opposition in India wants a CBI probe into this, the anti-coal mine lobby in Australia wants the government to rule out its plan to grant the company a government loan of around 1 billion AUD.

The Guardian Australia recently published a 97-page report by Directorate of Revenue Intelligence (DRI) that alleges Adani Group of siphoning Rs 15 billion rupee into their offshore bank accounts. The report alleges the Adani group for inflating invoices on an electricity project to shift Rs. 14938472484 into offshore bank accounts in 2011 for the benefit of their related party in UAE. Though the report was slapped on the company by DRI on May 15,2014, it became accessible to the public only last week.

The reports compiled and slapped on Adani Group on May 15, 2014 accuse Adani Group of ordering equipment (around $235m) for an electricity project in Maharashtra by using a front company in Dubai, UAE. The same Dubai company then sold the same equipment back to Adani Group in India at inflated prices.

Going by the allegations stated in the file, Adani Group then spent 400% more for the equipment. This amount was allegedly paid to companies under a Mauritius trust controlled by Vinod Adani. Yes, the same Vinod Adani (the elder brother of Vinod Adani) whose name was listed in Panama Papers leak along with promoters of Indiabulls and Apollo tyres.

The release of this three-year-old report now in public domain is highly unfortunate as it revolves at a time when the conglomerate is trying to seek around $1billion taxpayer loan in Australia to build its ambitious Carmichael coal mine in Queensland, Australia.

Money Laundering While Trading Gold Jewellery and Diamonds

The Directorate of Revenue Intelligence (DRI) have another claim against the conglomerate headed by Gautam Adani and it is for evading taxes and laundering money around Rs. 1,000 crore while trading in gold jewellery and cut and polished diamonds.

According to the allegations by DRI the companies in the Adani Group have misused export incentives by indulging in circular trading through a complex web of different companies located in various parts of the world. The government however seems reticent about filing a review petition in the SC that could defend its revenue interests.

Adani Has Been Accused for Dodging Taxes

According to the reports in Australian media, 13 out of the total 26 subsidiaries of the Adani group are allegedly registered in Cayman Islands, one of the most notorious tax haven on earth. Now the reason behind registering themselves in the Cayman Island is nothing beyond hiding assets and revenues to dodge taxes.

Besides, financial fraud allegations on Adani group there are allegations for damaging environment and natural habitat both in India and Australia.